Variety (May 1941)

Wednesdayt May 14, 1941 RADIO 21 MILLER CHALLENGES FLY ST.LOOISBiyES (Continued from paea I) fM Government hM expressed an bterest Following this ASCAP action, Mu- tual also dominated the second big question of the convention, the re- liant FCC orders, bjr boldly praising ttia regulatory body. StephenT.Earlyi secretary to President Roosevelt, ad- dressed a letter to Alfred J. Mc- Cosker, chairman of Mutual, which represented a sensational develop- ment, and gave further spotlighting to the youngest network. On White St. Louis, May 13. Round-up of reaction among operators of network-affiliated stations attending the NAB convention disclosed that a majority were not too upset by thie implications of the FCC's monopoly report. With few exceptions, af- filiates surveyed expressed themselves as not liking the demanded changes in network reg- tilations, and that -they will support any reso- lution opposing the report which is intrdduced at the convention tomorrow (Wednesday), but they still felt that NBC and Columbia, after a brief interval, will cool off and try to House staUonery under date of May adjust their differences with the FCC. I, this was the message: • Deor Al: ■ The President, who has been tXightly indisposed /or th*« past /et0 dayi,- has asked me to thank vou and Mr. Mac/arlane W. E. • Mac/arlan«, priz of MBS] in his name for your fine telegram of May 7. The President /eels when two ' execKtives with such important . interests at stake-can view a situation with such detachment, ■ there is every prospect of find- ing a just and equitable solution. ' He wants you and Mr. Mac/ar- ' lane to know that he grfatly ap- ■ preciates the conciliatory spirit which prompted your message. Very sin<;erely yours, Steve. . That Mutual has done Itself a lot of good can hardly t>a denied. Its ^prestige is at a new i»eak. It is the dominant fore* within the conven- tion, regardless of what may happen .between now and the Thursday (IS) Bight banquet. Ironle Clrenmitucee .- Meantime, the National Association «t Broadcasters is holding its 19th Knual convention at the New Jef- -son hotel here- under an' Ironic •Ircumstance, namely: At a time when the'lndostry ' has Jost been Jarred •* never be- fore by one branch of the Gov- ernment (the 'FCC) It is belnr invKed and warned to cooperate ■ generously with other branohes •f the Government (the Army, ' the Navy, the Treasnry, etc.). Not the least of the oddities Minority of the affiliates declared they fa- vored the networks Aghting; the FCC's latest rules to the bitter end, even as. it seemed to them that litigation might not get beyond the temporary injunction stage. In the viewpoint of the majority, the hardships that the change- over will entail won't be so onerous as to make local station operation too complicated or un- profitable, any more than has happened in the case of other industries such as coal, utilities, oil and commercial credits, which have in time been forced, even after battle, to accept stiff governmental regulation. These same broad caster» declared that they would be amenable to the demand for revisions in network rela- tions if only they were sure it were not the prelude to more restrictive and tougher measures, measures. It was also their belief that broadcasters might as well not only reconcile themselves to smaller profits, but realize immediately that with more intense competition looming, they •will have to apply themselves far more stren- uously to getting new business and keeping what accounts they have. MILLER OBTAINS NAB. BOARD APPROVE St. Louis, May 18. NAB board met - Monday night and voted 24—1- approving Neville Miller's various actions on co^^yright and monopoly Issues and extending his tenure of oflice to July 1^ 1944. It is expected that on Thursday (IS) an effort will be made to obtain a salary boost^ $35,000 annually for him. ' Fred - Weber, of Mutual, cast the tola negative vote on the' ^hole question of endorsing Miller since the endorsement seemed to - him a criticism of Mutual's behavior. It is likely that stockholders of Mutual may resign from the trade association in resentment . of the critical attitude of other broad- casters. John Gillin, of WOW, Omaha, at Iward meeting, asked of i Weber if he had a private under- au present gathering Is the picture | standing with ASCAP and also said Of a large roomful of station and net-I Weber had let the industry down work broadcasters listening to the 'voice and the message of James L. Fly, chairman of the FCC and a man who obviously does .'not share the broadcasters' conception of their 6wn guiltlessness. The radio industry, is, of course, 'mora or less reconciled to taking brders from the Government in con- Weber read into the record the ad- vice of Mutual attorneys and also again raised the question of the NAB board's right to 'criticize Mu- tual for acting in its own right ac- cording to its own lights. - Edward Klauber agreed that the copyright problem ' at this' stag^ should not be discussed by the NAB nectlon with the world crisis. That board, since 'certain people had financial sacrifices, loss of some ac' counts througii rnanutacturing 'pri- orities' situations, and increasingly numerous requisitions of choice evening time are likely is accepted •s inescapable. Far from any re- luctance to accept its full war-time visited the Department of Justice.' Late Monday the NAB press section ha'nded out a quotation from a let' ter written by Alfred McCosker to Miller protesting Miller's statements on Mutual actions, KSO, Des Moines, and WMT, responsibility, broadcasting appre-, Davenport, both Mutual, but also elates tfaat it is its good luck as | Blue and Columbia respectively, an- well as duty to be conspicuous in ■ pounced taking out ASCAP network public affairs and national defense, | licenses through Mutual. Both sta- Unole Sam Everywhere, | tions are Cowles-owned. Nevertheless it is evident from the • mood and the comment of many!. . j „. »„, „„ccihio_ convention that^ Uncle Sam is aU , f-'''J« P-^ay' T ^.e^' l-fi^ i^L^ll^f?fjl-'^A?\^i;,?."l.l5''J^^:i opener instead of Monday as tradi- ASCAP News Just prior to the NAB con-' vention Mutual and ASCAP signed, but NBC and CBS state they -want 'better' terms. Mean- time, BMI is revising its rates. This and other ASCAP and BMI news on Page 43 in the Music Section. casters (large and small) and that . the .chief speakers before the con- vention are either Government spokesmen. The St. Louis convention is prob- ably going to spend its time and strength grappling with the Govern- ment issues and the interlacing issue of ASCAP. For this reason an effort will be made either openly on the floor or through committee recom- mendation that a second convention comprising program directors of sta- tions be called in' order to consider and work out plans for broadcasting policy on national defense programs, including the looming dilemma of 'priorities' for Army, Navy, Treasury, Red Cross, et al. One group is strongly urging upon ^ broadcasters the imperative need for i tionally—complicates the news-re- ! porting task for Variett with its i Tuesday afternoon deadline in New lyork City. Uncertainty Casts Pall I As delegates gathered Monday ! (12) the industry's wide uncertainty ' as to the future was evident in the: Blue affiliates most conspicuously, and in their station sales reps' only less conspicuously. Broadcasters were inclined to brand as wishful thinking any hope that Congress as a ■ body would concern itself as a friend ■ of the industry against the regula- tory body. There was considerable private lobby criticism of the broad- I casting industry's backwardness in organizing its audience and friends so that In a crisis such as this Increased Cost of OperatioiiSeenby Hedges for Future St. LouU, May 18. Some ;i60 affiliates of NBC met Sunday night from 8 to 10 in the Gold Room of the Jefferson hotel to hear discussions by NBC execu- tives on • the possible meaning of changes ordered by FCC. William Hedges dwelt at length on the me- chanical confusion resulting from stations having commitments to many networks at the same time. Hedges informed the affiliates of the heavy telephone line switchover charges, and the probable need to hire more engineers and personnel to handle the traffic problem on programs. He also predicted a great increase In^dead air and missed cues, and the probable los.1 of station- break announcements now accomo- dated by the 20 second lull. l^iles Trammell presided at the meeting. Judge A. L. Ashby briefly out- lined some legal aspects of contracts and relationships under the new rules, assuming they become law. Edgar Kobak, sales jnanager of the Blue, provided the 'we're hot down- hearted' note. However, affiliates were quite ob- viotisly displeased that NBC brought them no plan of action or concrete ] point of view. U WIS Reported Set To Acquire WENR; Cowles Eye WCCO PUZZLE IS FM BACKINGF.CC. them to voluntarily organize to an-1 something could be done. / Chicago, May 13. A report germinated by the FCC situation is that station WLS, owned by the Prairie Farmer, hopes at long last to solve its time sharing prob- lem by buying WENR from NBC. WCCO Bumor Minneapolis, May 13. Following the FCC orders of a weelc ago, it is reported here that the Cowles group may buy WCCO from Columbia. Cowles now have a local newspaper in addition to radio stations in Des Moines and Daven- port, plus their other publishing properties. • Washingtorr; May 13. Qaestlon of President Boose- velt'a alUtnde toward the FCC eraekdewn eSorta was farther eonylloated today whan- White Honie Secretary ' Stephen T. Early declared bis owb response to the .telegram from mutual ehleti was 'enly a pMlte. ae- knewledgement' and la no way-' a statement of administration policy. He did not say whether- the Chief Execntlve approved of the antl-monopely ralei. or was aware In advance et Com- mlaflon Intentions, or gave the green light. Early announced he haa tele- graphed Lowell Mellett, head of Office of Government Beporte, to advise the N.A.B. Convention that the President has not ex- pressed any policy on the reform roles. The wire to Mellett ob- vIoDsly was designed to coanter reported Mutnal efforts to spread the Idea 'that the President favors the regulatory blitz. Hitting at a yarn In today's New York Tlraei, Early denied hia letter has destroyed Induitry hope for relief from Commlah rcfiilatloas, bat gave no cine where Mr, Eooscve|t stands or what the present status of Mark Ethrldre li. Attempt to clarify the situaUon (which still leaves Industry people wondering If the Commlsh majority had- White Hoose sanction) was result of In- quiries by Al Warner, CBS com- mentator. In . his wire to Mellett, Early directly slapped Mutnal by re- questing broadcasters be advised 'I deeply'regret that such use of the letter Is being made by Its recipients or their agents.'' Washington, May 13. Radio industry pulse-feelers still cannot tell their friends whether President Roosevelt favors the death sentence served on the networks last week by the Federal Communica- tions" Commission, Nothing indica- tive has come from the White House, and meanwhile Mark Ethridge (WHAS), solicited to be an expert adviser, holds a large, empty bag. Whether the President had any detailed knowledge of what the F.C.C. majority was about to do is the town's biggest mystery. Indus- try people feel sure, the President was unaware of the effect and nature of the 'reform' rules. But sophisti- cates can't explain how the Comnfish would take such drastic action un- less the White House gave a green light. Particularly in view of the Ethridge situation. There is one possible explanation, though nobody professes to know (Continued on page 29) 'GOn BOGEr . STIRS FLIIRE-UP St. Louis, May 13. Chairman James L. Fly, of the Federal Communications Commis- sion, appeared before the opening session of the 19th annual National Association of Broadcasters conven- tion this morning (Tuesday) to say that while certain regulatory prin- ciples were fixed with regard to public interest, all matters of 'means, methods and timing are flexible.' He gave unmistakable evidence that he Is 'grimly determined' to keep radio away from either govern- ment ownership under the one ex- treme, or domination by two or three great management groups on the other. He charged that some 'men, to divert attention from the fact of monopolistic control in their hands, conjure up insistently the bogey man of government operation.' Following Fly's speech, which was the third of four in aH>anel on radio in national defense, NAB President Neville Miller stepped in. as'chair- man of the meeting to say that he felt that the Commission chairman'* remarks should not be allowed to pass 'entirely unchallenged.' Mil- ler asserted that the government also used bogey men to hide its real purposes and declared that broad- casters are as patriotic as anyone in'or out of the government. HUler Draws Applause The wave of applause for Miller*! p(krenthetlc comment created pos- sibly < the most sensational episode ^ver to oc<;ur at any NAB conven- tion in the presence of a member of the Commission. Miller's attack and the reaction of the audience caused the FCC chairman to color Up, It was an Incident that obvious- ly gave many broadcasters^a vica- rious thrill, but it also alarmed others. During the question period not • single query was addressed to Fly. Only Lincoln Dellar, of KFSO, Sab Francisco, asked Commander H. R. Thurber, of the Navy, a routine question whether radio stations could assume that Navy stories coming over the wire ticker might be re- garded as sufficiently checked In an official sense. Thurber replied that such an assumption should not be made at the present time. Major General Robert RIchardsm of the Army, and Lowell Mellett, of the Office of Government Reports, were other participants In the morning panel. Only other- significant action this morning was a breakfast.meeting of the Independent Radio Network Af- filiates, at which it was voted not to make any reconrniendatlons as fd the position the IRNA should taka regarding the FCC'i monopoly re- port, but to have the whole issue thrown into discussion at one of the regular sessions of the full NAB convention. WALLACE ADDRESSES NAB. VIA TELEPHONE St. Louis, May 13. NAB program committee received word Monday (12) afternoon that 'Vice-President Henry Wallace would be unable to attend the convention, but he would have to make his scheduled speech to the convention .this morning (Tuesday) by tele- phone wire. Reason he gave was i that a vote on an important Issue ^ was pending and he didn't want to I get burned, as happened a couple of , months ago on the Argentine beef ; amendment. Wallace had also accepted an Invi- ^ tation from Mutual ^to be guest at a j cocktail party It tossed this after- noon (Tuesday) and some delegates I speculated whether Wallace's de- cision was influenced by a suggestion that his presence at the Mutual gathering might prove embarrassing to NBC and Columbia In the light of Mutual's moves in the ASCAP and FCC monopoly report issues.